European stocks head for worst weekly loss since 2008 on coronavirus fears

2020-02-28 10:49:26 GMT (Economies.com)
European stocks head for worst weekly loss since 2008 on coronavirus fears

European stocks fell on Friday, to stretch losses for the second straight day, hitting a 4-month low, to head for the worst weekly loss since the 2008 global financial crisis, due to the massive sell-off amid escalated fears over the coronavirus outbreak in most parts of the world.

 

The Stoxx Europe 600 index was lower by 3.9% at 09:05 GMT, to hit its lowest level since October, after it closed lower by 3.8% yesterday, as the coronavirus infections increased beyond China.

 

The index opened today's session lower, to extend its losses for the second straight day, and hit its 4-month low, with most of the major European exchanges and sectors falling today.

 

So far during this week, the Stoxx Europe Index shed 13.5%, on the cusp of its second straight weekly loss, and the largest weekly loss since the peak of the 2008 global financial crisis.

 

The travel and leisure sector saw the largest losses in Europe today, as its stocks plunged more than 35%, on growing expectations for a drop in the sector's companies due flights and traveling restrictions.

 

Fears over the novel coronavirus continued to cast a shadow on global markets, after news about the virus spread beyond China, in about 46 countries all around the world.

 

The World Health Organization said yesterday that with the rapid spread of the coronavirus around the world, all countries should prepare for a fierce fight.

 

The US Health Centers for Disease Control and Prevention urged citizens to be prepared for the potential coronavirus outbreak in the country, following its spread to most parts of the world.

 

This forced most international companies and banks to issue warnings about a drop in their business performance and profits during the first quarter of 2020.

 

S&P 500 futures fell 2.1% today, to dive to a 4-month low, after the index closed lower by 4.4% yesterday at Wall Street, and posted its sixth straight daily loss.

 

Back to Europe, the Euro Stoxx 50 index lost 3.8%, France's CAC 40 fell by 3.6%, the German DAX shed 4.2%, and the UK's FTSE 100 fell by 3.5%. 

 
 
 
  Symbol Last Change Chg.%
1.1135
0.0430
4.0163%
1.2455
0.0809
6.9509%
Tadawul
6376.62
49.70
0.79%
14.446
1.863
14.810%
21.828
-1.600
6.830%
24.84
-1.50
5.69%
1620.150
122.735
8.197%
 
 
US
 
Europe
 
Asia